Federal Deposit Insurance Corps chair calls for super-council
The head of the US Federal Deposit Insurance Corps has said the country needs a council of regulators to oversee threats to the financial system, in addition to a regulator to supervise the largest financial institutions, Reuters reports.
FDIC Chairman Sheila Bair said the Federal Reserve could oversee systemically important firms but that a council that pulls in the US Treasury, FDIC and Securities and Exchange Commission alongside the Fed should be charged with keeping an eye on system-wide risks.
"A distinction should be drawn between the direct supervision of systemically significant financial firms and the macro-prudential oversight of developing risks that may pose systemic risks to the US financial system," Bair said in the testimony obtained by Reuters.
